Can a MA town increase it's tax levy by more than 2 1/2% without an override or debt exclusion? Yes it can.
Example using simple math.
Town tax levy = $1,000,000.00, but town only spends or levys $900,000.00 for FY2025, leaving $100,000.00 in excess levy capacity. Next FY, automatic prop 2 1/2 increase for FY2026 would be $25,000.00 for a total levy of $1,025,000.00 and the town decides to use that excess capacity of $100,000.00, they then have a levy of $1,125,000.00 for fy2026. No, the law does not allow use of excess 100K to get a levy of $1,225,000.00, but having excess capacity to be available in following years does allow for a levy to increase by more than 2 1/2%.
It's a major screw up when tax bills for Q3 & Q4 are 35% higher than Q1 and Q2. I knew when I received the "estimated" bills that mine was too low. I hope nobody in town was shocked when they got the final tax bills.
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